J150EXEUE 97 Johnson 150

97 Johnson 150

Got a ‘97 Johnson 150 2-stroke this June & it has been using more oil than I think is normal & is smoking a lot over the past month. It’s not an air leak or the VRO & I started looking around & noticed that the hose (Labeled #1) in this picture Is disconnected. Seems it always has been. When I connect it to the orifice (labeled #2), I get gas coming out of the part labeled #3. I thought connecting this hose might be the answer to the extra oil use but don’t understand why fuel is coming out. Pretty much a novice with outboards this size so any feedback would be greatly appreciated.

Thanks in advance.